{"id":25378,"date":"2021-06-10T01:43:08","date_gmt":"2021-06-10T01:43:08","guid":{"rendered":"https:\/\/www.dumpsbase.com\/freedumps\/?p=25378"},"modified":"2021-06-10T01:43:10","modified_gmt":"2021-06-10T01:43:10","slug":"real-prm-certification-exam-8009-dumps-questions","status":"publish","type":"post","link":"https:\/\/www.dumpsbase.com\/freedumps\/real-prm-certification-exam-8009-dumps-questions.html","title":{"rendered":"Real PRM Certification Exam 8009 Dumps Questions"},"content":{"rendered":"\n<p>Test PRM Certification 8009 Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics &#8211; 2015 Edition now. We have real PRM certification exam 8009 dumps questions to help you prepare for 8009 test well. There are 110 practice exam questions and answers in DumpsBase 8009 pdf file. Just read 8009 exam dumps questions with the pdf and software now.<\/p>\n<h2>Check PRM Certification <span style=\"color: #800000;\">8009 FREE Dumps<\/span> First<\/h2>\n<script>\n\t  window.fbAsyncInit = function() {\n\t    FB.init({\n\t      appId            : '622169541470367',\n\t      autoLogAppEvents : true,\n\t      xfbml            : true,\n\t      version          : 'v3.1'\n\t    });\n\t  };\n\t\n\t  (function(d, s, id){\n\t     var js, fjs = d.getElementsByTagName(s)[0];\n\t     if (d.getElementById(id)) {return;}\n\t     js = d.createElement(s); js.id = id;\n\t     js.src = \"https:\/\/connect.facebook.net\/en_US\/sdk.js\";\n\t     fjs.parentNode.insertBefore(js, fjs);\n\t   }(document, 'script', 'facebook-jssdk'));\n\t<\/script><script type=\"text\/javascript\" >\ndocument.addEventListener(\"DOMContentLoaded\", function(event) { \nif(!window.jQuery) alert(\"The important jQuery library is not properly loaded in your site. Your WordPress theme is probably missing the essential wp_head() call. You can switch to another theme and you will see that the plugin works fine and this notice disappears. If you are still not sure what to do you can contact us for help.\");\n});\n<\/script>  \n  \n<div  id=\"watupro_quiz\" class=\"quiz-area single-page-quiz\">\n<p id=\"submittingExam5489\" style=\"display:none;text-align:center;\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/plugins\/watupro\/img\/loading.gif\" width=\"16\" height=\"16\"><\/p>\n\n<div class=\"watupro-exam-description\" id=\"description-quiz-5489\"><\/div>\n\n<form action=\"\" method=\"post\" class=\"quiz-form\" id=\"quiz-5489\"  enctype=\"multipart\/form-data\" >\n<div class='watu-question ' id='question-1' style=';'><div id='questionWrap-1'  class='   watupro-question-id-181320'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>1. <\/span>Employees shall be remunerated adequately for the roles that they perform, where 'adequately' is defined<\/div><input type='hidden' name='question_id[]' id='qID_1' value='181320' \/><input type='hidden' id='answerType181320' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181320[]' id='answer-id-730286' class='answer   answerof-181320 ' value='730286'   \/><label for='answer-id-730286' id='answer-label-730286' class=' answer'><span>as being the market norm for similarly situated personnel in competitive organizations<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181320[]' id='answer-id-730287' class='answer   answerof-181320 ' value='730287'   \/><label for='answer-id-730287' id='answer-label-730287' class=' answer'><span>using external references and benchmarks, and in a framework which is consistent with the type of risk-taking behavior expected of employees<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181320[]' id='answer-id-730288' class='answer   answerof-181320 ' value='730288'   \/><label for='answer-id-730288' id='answer-label-730288' class=' answer'><span>using the risk reward profile for each business line in the organization<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181320[]' id='answer-id-730289' class='answer   answerof-181320 ' value='730289'   \/><label for='answer-id-730289' id='answer-label-730289' class=' answer'><span>as commensurate with policies to attract and retain high income \/ revenue earners<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-2' style=';'><div id='questionWrap-2'  class='   watupro-question-id-181321'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>2. <\/span>Boards of Directors, including Audit and Risk Committees must review thoroughly compensation plans of potentially &quot;highly compensated positions&quot; for: <br \/>\r<br>I. competitive market conditions <br \/>\r<br>II. ensuring compliance with their corporate risk appetite and fiduciary responsibility to shareholders <br \/>\r<br>III. ensuring any discretionary bonus plans are geared towards keeping high income \/ revenue generators <br \/>\r<br>IV. reporting all such personnel to the local regulator<\/div><input type='hidden' name='question_id[]' id='qID_2' value='181321' \/><input type='hidden' id='answerType181321' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181321[]' id='answer-id-730290' class='answer   answerof-181321 ' value='730290'   \/><label for='answer-id-730290' id='answer-label-730290' class=' answer'><span>II, III and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181321[]' id='answer-id-730291' class='answer   answerof-181321 ' value='730291'   \/><label for='answer-id-730291' id='answer-label-730291' class=' answer'><span>I, II and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181321[]' id='answer-id-730292' class='answer   answerof-181321 ' value='730292'   \/><label for='answer-id-730292' id='answer-label-730292' class=' answer'><span>All of the above<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181321[]' id='answer-id-730293' class='answer   answerof-181321 ' value='730293'   \/><label for='answer-id-730293' id='answer-label-730293' class=' answer'><span>I and II only<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-3' style=';'><div id='questionWrap-3'  class='   watupro-question-id-181322'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>3. <\/span>What was the main risk scenario on the Metallgesellschaft trading strategy?<\/div><input type='hidden' name='question_id[]' id='qID_3' value='181322' \/><input type='hidden' id='answerType181322' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181322[]' id='answer-id-730294' class='answer   answerof-181322 ' value='730294'   \/><label for='answer-id-730294' id='answer-label-730294' class=' answer'><span>Realized losses on short-term contracts against unrealized gains on the long-run contract<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181322[]' id='answer-id-730295' class='answer   answerof-181322 ' value='730295'   \/><label for='answer-id-730295' id='answer-label-730295' class=' answer'><span>The final price of the underlying being higher than the initial price<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181322[]' id='answer-id-730296' class='answer   answerof-181322 ' value='730296'   \/><label for='answer-id-730296' id='answer-label-730296' class=' answer'><span>The initial price of the underlying being higher than the final price<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181322[]' id='answer-id-730297' class='answer   answerof-181322 ' value='730297'   \/><label for='answer-id-730297' id='answer-label-730297' class=' answer'><span>The short-term price of the underlying being higher than the long-run contract<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-4' style=';'><div id='questionWrap-4'  class='   watupro-question-id-181323'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>4. <\/span>Several clients, including Procter and Gamble took legal action against Bankers Trust, claiming Bankers Trust<\/div><input type='hidden' name='question_id[]' id='qID_4' value='181323' \/><input type='hidden' id='answerType181323' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181323[]' id='answer-id-730298' class='answer   answerof-181323 ' value='730298'   \/><label for='answer-id-730298' id='answer-label-730298' class=' answer'><span>sold them derivative products without properly advising them of the relevant risks<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181323[]' id='answer-id-730299' class='answer   answerof-181323 ' value='730299'   \/><label for='answer-id-730299' id='answer-label-730299' class=' answer'><span>did not honour its contractual obligations to pay<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181323[]' id='answer-id-730300' class='answer   answerof-181323 ' value='730300'   \/><label for='answer-id-730300' id='answer-label-730300' class=' answer'><span>was involved in accounting fraud<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181323[]' id='answer-id-730301' class='answer   answerof-181323 ' value='730301'   \/><label for='answer-id-730301' id='answer-label-730301' class=' answer'><span>hid profits<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-5' style=';'><div id='questionWrap-5'  class='   watupro-question-id-181324'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>5. <\/span>Which of the following was not received by Northern Rock as official support from the UK banking and government authorities?<\/div><input type='hidden' name='question_id[]' id='qID_5' value='181324' \/><input type='hidden' id='answerType181324' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181324[]' id='answer-id-730302' class='answer   answerof-181324 ' value='730302'   \/><label for='answer-id-730302' id='answer-label-730302' class=' answer'><span>A covert money market support operation designed to cover up the difficulties Northern Rock was facing<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181324[]' id='answer-id-730303' class='answer   answerof-181324 ' value='730303'   \/><label for='answer-id-730303' id='answer-label-730303' class=' answer'><span>The Bank of England's role as Lender-Of-Last-resort was activated at a penalty interest rate of 150 basis points above the Bank Rate<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181324[]' id='answer-id-730304' class='answer   answerof-181324 ' value='730304'   \/><label for='answer-id-730304' id='answer-label-730304' class=' answer'><span>The UK government offered to guarantee all existing and new retail deposits, and to most other creditors<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181324[]' id='answer-id-730305' class='answer   answerof-181324 ' value='730305'   \/><label for='answer-id-730305' id='answer-label-730305' class=' answer'><span>The Bank of England provided an additional unlimited facility secured on the collateral of all Northern Rock assets<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-6' style=';'><div id='questionWrap-6'  class='   watupro-question-id-181325'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>6. <\/span>The problems at WorldCom can best be characterized as related to:<\/div><input type='hidden' name='question_id[]' id='qID_6' value='181325' \/><input type='hidden' id='answerType181325' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181325[]' id='answer-id-730306' class='answer   answerof-181325 ' value='730306'   \/><label for='answer-id-730306' id='answer-label-730306' class=' answer'><span>Market Risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181325[]' id='answer-id-730307' class='answer   answerof-181325 ' value='730307'   \/><label for='answer-id-730307' id='answer-label-730307' class=' answer'><span>Credit Risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181325[]' id='answer-id-730308' class='answer   answerof-181325 ' value='730308'   \/><label for='answer-id-730308' id='answer-label-730308' class=' answer'><span>Operational and Regulatory Compliance Risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181325[]' id='answer-id-730309' class='answer   answerof-181325 ' value='730309'   \/><label for='answer-id-730309' id='answer-label-730309' class=' answer'><span>All of the Above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-7' style=';'><div id='questionWrap-7'  class='   watupro-question-id-181326'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>7. <\/span>The Fortress Re finite reinsurance model<\/div><input type='hidden' name='question_id[]' id='qID_7' value='181326' \/><input type='hidden' id='answerType181326' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181326[]' id='answer-id-730310' class='answer   answerof-181326 ' value='730310'   \/><label for='answer-id-730310' id='answer-label-730310' class=' answer'><span>allowed Fortress to claim re-insurance claims payments from the finite reinsurers and paid premiums to cover these deals over a 5 year period, and as the risks were spread out over time the annual premiums were accounted for as current liabilities on the books of the pool members, giving a true impression of profitability<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181326[]' id='answer-id-730311' class='answer   answerof-181326 ' value='730311'   \/><label for='answer-id-730311' id='answer-label-730311' class=' answer'><span>allowed Fortress to claim re-insurance claims payments from the finite reinsurers and paid annual premiums to cover these policies, and as the risks were spread out over the year the annual premiums were accounted for as current liabilities on the books of the pool members, giving a true impression of profitability<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181326[]' id='answer-id-730312' class='answer   answerof-181326 ' value='730312'   \/><label for='answer-id-730312' id='answer-label-730312' class=' answer'><span>allowed Fortress to claim re-insurance claims payments from the finite reinsurers and paid premiums to cover these deals over a 5 year period, and as the risks were spread out over time the future premiums were accounted for as current liabilities on the books of the pool members, giving a true impression of profitability<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181326[]' id='answer-id-730313' class='answer   answerof-181326 ' value='730313'   \/><label for='answer-id-730313' id='answer-label-730313' class=' answer'><span>allowed Fortress to claim re-insurance claims payments from the finite reinsurers and paid premiums to cover these deals over a 5 year period, but as the risks were spread out over time the future premiums were not accounted for as current liabilities on the books of the pool members, thus giving a false impression of profitability<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-8' style=';'><div id='questionWrap-8'  class='   watupro-question-id-181327'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>8. <\/span>According to the Group of 30 Report, dealers and end-users are encouraged to:<\/div><input type='hidden' name='question_id[]' id='qID_8' value='181327' \/><input type='hidden' id='answerType181327' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181327[]' id='answer-id-730314' class='answer   answerof-181327 ' value='730314'   \/><label for='answer-id-730314' id='answer-label-730314' class=' answer'><span>Use separate trading agreements for interest rate derivatives, equity derivatives and foreign exchange transactions.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181327[]' id='answer-id-730315' class='answer   answerof-181327 ' value='730315'   \/><label for='answer-id-730315' id='answer-label-730315' class=' answer'><span>Use a common trading agreement for interest rate and equity derivatives but a separate \r\nagreement for foreign exchange transactions.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181327[]' id='answer-id-730316' class='answer   answerof-181327 ' value='730316'   \/><label for='answer-id-730316' id='answer-label-730316' class=' answer'><span>Use one trading agreement for foreign exchange forwards and another for foreign exchange options.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181327[]' id='answer-id-730317' class='answer   answerof-181327 ' value='730317'   \/><label for='answer-id-730317' id='answer-label-730317' class=' answer'><span>Use a single master trading agreement as widely as possible with each counter party.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-9' style=';'><div id='questionWrap-9'  class='   watupro-question-id-181328'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>9. <\/span>Which of the following should NOT be part of the Risk Management Infrastructure?<\/div><input type='hidden' name='question_id[]' id='qID_9' value='181328' \/><input type='hidden' id='answerType181328' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181328[]' id='answer-id-730318' class='answer   answerof-181328 ' value='730318'   \/><label for='answer-id-730318' id='answer-label-730318' class=' answer'><span>Define the organization's definition of risk management as articulated by the Board in clear and uncertain terms<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181328[]' id='answer-id-730319' class='answer   answerof-181328 ' value='730319'   \/><label for='answer-id-730319' id='answer-label-730319' class=' answer'><span>Include financial risk management, compliance and external reporting and, to the extent that resources allow, should exclude legal or accounting<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181328[]' id='answer-id-730320' class='answer   answerof-181328 ' value='730320'   \/><label for='answer-id-730320' id='answer-label-730320' class=' answer'><span>Be independently staffed and report to an employee who is on the Executive Committee (Operating Committee) but who is NOT a business unit leader<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181328[]' id='answer-id-730321' class='answer   answerof-181328 ' value='730321'   \/><label for='answer-id-730321' id='answer-label-730321' class=' answer'><span>Review continually the application of the Principles of Good Governance to the Risk Management Infrastructure, financial accounting and reporting infrastructure and the organization as a whole<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-10' style=';'><div id='questionWrap-10'  class='   watupro-question-id-181329'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>10. <\/span>The problems at Bankgesellschaft Berlin can best be characterized as failures related to:<\/div><input type='hidden' name='question_id[]' id='qID_10' value='181329' \/><input type='hidden' id='answerType181329' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181329[]' id='answer-id-730322' class='answer   answerof-181329 ' value='730322'   \/><label for='answer-id-730322' id='answer-label-730322' class=' answer'><span>Market Risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181329[]' id='answer-id-730323' class='answer   answerof-181329 ' value='730323'   \/><label for='answer-id-730323' id='answer-label-730323' class=' answer'><span>Credit Risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181329[]' id='answer-id-730324' class='answer   answerof-181329 ' value='730324'   \/><label for='answer-id-730324' id='answer-label-730324' class=' answer'><span>Operational Risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181329[]' id='answer-id-730325' class='answer   answerof-181329 ' value='730325'   \/><label for='answer-id-730325' id='answer-label-730325' class=' answer'><span>Both B and C<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-11' style=';'><div id='questionWrap-11'  class='   watupro-question-id-181330'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>11. <\/span>Which of the following is FALSE?<\/div><input type='hidden' name='question_id[]' id='qID_11' value='181330' \/><input type='hidden' id='answerType181330' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181330[]' id='answer-id-730326' class='answer   answerof-181330 ' value='730326'   \/><label for='answer-id-730326' id='answer-label-730326' class=' answer'><span>Nick Leeson also ran the back office for his trading area<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181330[]' id='answer-id-730327' class='answer   answerof-181330 ' value='730327'   \/><label for='answer-id-730327' id='answer-label-730327' class=' answer'><span>Nick Leeson dealt in complex derivatives lacking transparency of pricing<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181330[]' id='answer-id-730328' class='answer   answerof-181330 ' value='730328'   \/><label for='answer-id-730328' id='answer-label-730328' class=' answer'><span>SIMEX made inquiries to Barings Bank about large margin calls on its positions<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181330[]' id='answer-id-730329' class='answer   answerof-181330 ' value='730329'   \/><label for='answer-id-730329' id='answer-label-730329' class=' answer'><span>Nick Leeson claimed to be running an arbitrage book<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-12' style=';'><div id='questionWrap-12'  class='   watupro-question-id-181331'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>12. <\/span>The Financial Accounting and Reporting Infrastructure of any organization must: <br \/>\r<br>I. Accurately represent the corporation's current and known financial condition in a timely manner <br \/>\r<br>II. Only use off-balance sheet transactions which have a legitimate economic, tax, risk transfer or risk mitigating purpose <br \/>\r<br>III. Provide a detailed description of the Risk Management Infrastructure in the organization's Annual Report to Shareholders <br \/>\r<br>IV. Provide an auditable Annual Statement of Compliance with the Board's publicly stated Standards of Corporate Governance to the Board and Audit Committee<\/div><input type='hidden' name='question_id[]' id='qID_12' value='181331' \/><input type='hidden' id='answerType181331' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181331[]' id='answer-id-730330' class='answer   answerof-181331 ' value='730330'   \/><label for='answer-id-730330' id='answer-label-730330' class=' answer'><span>I, II and III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181331[]' id='answer-id-730331' class='answer   answerof-181331 ' value='730331'   \/><label for='answer-id-730331' id='answer-label-730331' class=' answer'><span>I, III and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181331[]' id='answer-id-730332' class='answer   answerof-181331 ' value='730332'   \/><label for='answer-id-730332' id='answer-label-730332' class=' answer'><span>I and III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181331[]' id='answer-id-730333' class='answer   answerof-181331 ' value='730333'   \/><label for='answer-id-730333' id='answer-label-730333' class=' answer'><span>All of these are expected of the Financial Accounting and Reporting Infrastructure<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-13' style=';'><div id='questionWrap-13'  class='   watupro-question-id-181332'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>13. <\/span>A risk manager has just completed a risk assessment project. The report has been given to the risk manager's direct supervisor, who refuses to escalate the material issues raised in the report. Further, the direct supervisor edits the report to remove the section describing the material risk, who then submits it to the firm's Executive Committee. <br \/>\r<br>According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), which of the following actions is most appropriate:<\/div><input type='hidden' name='question_id[]' id='qID_13' value='181332' \/><input type='hidden' id='answerType181332' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181332[]' id='answer-id-730334' class='answer   answerof-181332 ' value='730334'   \/><label for='answer-id-730334' id='answer-label-730334' class=' answer'><span>The risk manager has submitted the report to their direct supervisor and their obligation ends at this point, nothing further should be done<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181332[]' id='answer-id-730335' class='answer   answerof-181332 ' value='730335'   \/><label for='answer-id-730335' id='answer-label-730335' class=' answer'><span>The risk manager should attempt to resolve the conflict with the direct supervisor, but if that does not work, they should contact the Whistle-Blowing Hotline of the organization. If no such hot-line is in place, they should contact the PRMIA Ethics Committee<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181332[]' id='answer-id-730336' class='answer   answerof-181332 ' value='730336'   \/><label for='answer-id-730336' id='answer-label-730336' class=' answer'><span>Escalation of the issue is against the Code of Conduct because one should respect the administrative structure of the organization<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181332[]' id='answer-id-730337' class='answer   answerof-181332 ' value='730337'   \/><label for='answer-id-730337' id='answer-label-730337' class=' answer'><span>If the risk manager deems it appropriate, he \/ she should send a copy of the original report to the CEO<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-14' style=';'><div id='questionWrap-14'  class='   watupro-question-id-181333'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>14. <\/span>PRMIA Governance Principles<\/div><input type='hidden' name='question_id[]' id='qID_14' value='181333' \/><input type='hidden' id='answerType181333' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181333[]' id='answer-id-730338' class='answer   answerof-181333 ' value='730338'   \/><label for='answer-id-730338' id='answer-label-730338' class=' answer'><span>must be adhered to by all PRMIA member organizations<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181333[]' id='answer-id-730339' class='answer   answerof-181333 ' value='730339'   \/><label for='answer-id-730339' id='answer-label-730339' class=' answer'><span>is a set of recommendations based on research and best practice<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181333[]' id='answer-id-730340' class='answer   answerof-181333 ' value='730340'   \/><label for='answer-id-730340' id='answer-label-730340' class=' answer'><span>must be adhered to by all PRM charter holders<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181333[]' id='answer-id-730341' class='answer   answerof-181333 ' value='730341'   \/><label for='answer-id-730341' id='answer-label-730341' class=' answer'><span>must be adhered to by all financial firms that are PRMIA members<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-15' style=';'><div id='questionWrap-15'  class='   watupro-question-id-181334'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>15. <\/span>For the sentence <br \/>\r<br>&quot;The organization should have at its disposal employees who have adequate _________, ________ and _______ to perform the tasks assigned to them&quot;, <br \/>\r<br>Choose the correct combination of words from the following options:<\/div><input type='hidden' name='question_id[]' id='qID_15' value='181334' \/><input type='hidden' id='answerType181334' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181334[]' id='answer-id-730342' class='answer   answerof-181334 ' value='730342'   \/><label for='answer-id-730342' id='answer-label-730342' class=' answer'><span>knowledge, skills, expertise<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181334[]' id='answer-id-730343' class='answer   answerof-181334 ' value='730343'   \/><label for='answer-id-730343' id='answer-label-730343' class=' answer'><span>experience, skills, previous successes<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181334[]' id='answer-id-730344' class='answer   answerof-181334 ' value='730344'   \/><label for='answer-id-730344' id='answer-label-730344' class=' answer'><span>risk appetite, knowledge, expertise<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181334[]' id='answer-id-730345' class='answer   answerof-181334 ' value='730345'   \/><label for='answer-id-730345' id='answer-label-730345' class=' answer'><span>track record, expertise, skills<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-16' style=';'><div id='questionWrap-16'  class='   watupro-question-id-181335'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>16. <\/span>The Chief Risk Officer is responsible for the management of the Risk Management Infrastructure, and as such helps the Board define, and then implements throughout the organization, the risk appetite of the organization. <br \/>\r<br>Which of the following is also the responsibility of the Chief Risk Officer?<\/div><input type='hidden' name='question_id[]' id='qID_16' value='181335' \/><input type='hidden' id='answerType181335' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181335[]' id='answer-id-730346' class='answer   answerof-181335 ' value='730346'   \/><label for='answer-id-730346' id='answer-label-730346' class=' answer'><span>Maintaining appropriate assurance measures to ensure that the Governance and Risk framework of the organization is effective, and, if any shortcomings are discovered, to escalate these to the Board so that remedial action can be taken in an appropriate and timely manner<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181335[]' id='answer-id-730347' class='answer   answerof-181335 ' value='730347'   \/><label for='answer-id-730347' id='answer-label-730347' class=' answer'><span>ensuring that all employees understand the rules and regulations (both internal and external) with which they must comply and the implications, for them and for the organization, of non-compliance<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181335[]' id='answer-id-730348' class='answer   answerof-181335 ' value='730348'   \/><label for='answer-id-730348' id='answer-label-730348' class=' answer'><span>Ensures that reporting of risk and governance-related matters are produced in a timely and accurate manner<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181335[]' id='answer-id-730349' class='answer   answerof-181335 ' value='730349'   \/><label for='answer-id-730349' id='answer-label-730349' class=' answer'><span>Acts as sponsor for risk throughout the organization and ensures that a risk culture is implemented, and maintained<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-17' style=';'><div id='questionWrap-17'  class='   watupro-question-id-181336'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>17. <\/span>The Chair, Vice Chair, Secretary and Treasurer of the PRMIA Board of Directors are elected by:<\/div><input type='hidden' name='question_id[]' id='qID_17' value='181336' \/><input type='hidden' id='answerType181336' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181336[]' id='answer-id-730350' class='answer   answerof-181336 ' value='730350'   \/><label for='answer-id-730350' id='answer-label-730350' class=' answer'><span>All PRMIA Fellow Members<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181336[]' id='answer-id-730351' class='answer   answerof-181336 ' value='730351'   \/><label for='answer-id-730351' id='answer-label-730351' class=' answer'><span>The Regional Directors<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181336[]' id='answer-id-730352' class='answer   answerof-181336 ' value='730352'   \/><label for='answer-id-730352' id='answer-label-730352' class=' answer'><span>The Blue Ribbon Advisory Panel<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181336[]' id='answer-id-730353' class='answer   answerof-181336 ' value='730353'   \/><label for='answer-id-730353' id='answer-label-730353' class=' answer'><span>A two-thirds affirmative vote of all members<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-18' style=';'><div id='questionWrap-18'  class='   watupro-question-id-181337'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>18. <\/span>As a PRMIA member, you have certain responsibilities. Among these are the requirement(s) to:<\/div><input type='hidden' name='question_id[]' id='qID_18' value='181337' \/><input type='hidden' id='answerType181337' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181337[]' id='answer-id-730354' class='answer   answerof-181337 ' value='730354'   \/><label for='answer-id-730354' id='answer-label-730354' class=' answer'><span>Vote in Board elections<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181337[]' id='answer-id-730355' class='answer   answerof-181337 ' value='730355'   \/><label for='answer-id-730355' id='answer-label-730355' class=' answer'><span>Attend at least one PRMIA chapter meeting per year<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181337[]' id='answer-id-730356' class='answer   answerof-181337 ' value='730356'   \/><label for='answer-id-730356' id='answer-label-730356' class=' answer'><span>Adhere to the PRMIA Standards of Best Practice, Conduct and Ethics<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181337[]' id='answer-id-730357' class='answer   answerof-181337 ' value='730357'   \/><label for='answer-id-730357' id='answer-label-730357' class=' answer'><span>All of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-19' style=';'><div id='questionWrap-19'  class='   watupro-question-id-181338'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>19. <\/span>Finite insurance is reinsurance which<\/div><input type='hidden' name='question_id[]' id='qID_19' value='181338' \/><input type='hidden' id='answerType181338' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181338[]' id='answer-id-730358' class='answer   answerof-181338 ' value='730358'   \/><label for='answer-id-730358' id='answer-label-730358' class=' answer'><span>transfers only a limited amount of risk at the usual reinsurance price<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181338[]' id='answer-id-730359' class='answer   answerof-181338 ' value='730359'   \/><label for='answer-id-730359' id='answer-label-730359' class=' answer'><span>transfers the total risk at less cost than traditional reinsurance<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181338[]' id='answer-id-730360' class='answer   answerof-181338 ' value='730360'   \/><label for='answer-id-730360' id='answer-label-730360' class=' answer'><span>transfers the total risk at the usual reinsurance price<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181338[]' id='answer-id-730361' class='answer   answerof-181338 ' value='730361'   \/><label for='answer-id-730361' id='answer-label-730361' class=' answer'><span>transfers only a limited amount of risk at less cost than traditional reinsurance<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-20' style=';'><div id='questionWrap-20'  class='   watupro-question-id-181339'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>20. <\/span>John Smith wants to run for election to the Board of Directors of PRMIA. To be nominated, he needs:<\/div><input type='hidden' name='question_id[]' id='qID_20' value='181339' \/><input type='hidden' id='answerType181339' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181339[]' id='answer-id-730362' class='answer   answerof-181339 ' value='730362'   \/><label for='answer-id-730362' id='answer-label-730362' class=' answer'><span>The backing of three other members<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181339[]' id='answer-id-730363' class='answer   answerof-181339 ' value='730363'   \/><label for='answer-id-730363' id='answer-label-730363' class=' answer'><span>To go through a screening process conducted by the Nominations Committee<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181339[]' id='answer-id-730364' class='answer   answerof-181339 ' value='730364'   \/><label for='answer-id-730364' id='answer-label-730364' class=' answer'><span>The backing of 6% of local members<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181339[]' id='answer-id-730365' class='answer   answerof-181339 ' value='730365'   \/><label for='answer-id-730365' id='answer-label-730365' class=' answer'><span>The backing of five other members and to be serving on at least one PRMIA Committee<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-21' style=';'><div id='questionWrap-21'  class='   watupro-question-id-181340'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>21. <\/span>The Chair of the PRMIA Board of Directors may hold the following offices:<\/div><input type='hidden' name='question_id[]' id='qID_21' value='181340' \/><input type='hidden' id='answerType181340' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181340[]' id='answer-id-730366' class='answer   answerof-181340 ' value='730366'   \/><label for='answer-id-730366' id='answer-label-730366' class=' answer'><span>Parliamentarian<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181340[]' id='answer-id-730367' class='answer   answerof-181340 ' value='730367'   \/><label for='answer-id-730367' id='answer-label-730367' class=' answer'><span>Secretary<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181340[]' id='answer-id-730368' class='answer   answerof-181340 ' value='730368'   \/><label for='answer-id-730368' id='answer-label-730368' class=' answer'><span>Vice Chair<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181340[]' id='answer-id-730369' class='answer   answerof-181340 ' value='730369'   \/><label for='answer-id-730369' id='answer-label-730369' class=' answer'><span>Chair only<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-22' style=';'><div id='questionWrap-22'  class='   watupro-question-id-181341'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>22. <\/span>According to PRMIA governance principles, boards and audit committees should \u2026<\/div><input type='hidden' name='question_id[]' id='qID_22' value='181341' \/><input type='hidden' id='answerType181341' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181341[]' id='answer-id-730370' class='answer   answerof-181341 ' value='730370'   \/><label for='answer-id-730370' id='answer-label-730370' class=' answer'><span>Review compensation plans to ensure consistency with corporate risk appetite, competitive market conditions, and fiduciary responsibility to shareholders<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181341[]' id='answer-id-730371' class='answer   answerof-181341 ' value='730371'   \/><label for='answer-id-730371' id='answer-label-730371' class=' answer'><span>Collectively assume responsibility of understanding and reporting the effectiveness of the firm risk management infrastructure<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181341[]' id='answer-id-730372' class='answer   answerof-181341 ' value='730372'   \/><label for='answer-id-730372' id='answer-label-730372' class=' answer'><span>Be composed of key business unit representatives<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181341[]' id='answer-id-730373' class='answer   answerof-181341 ' value='730373'   \/><label for='answer-id-730373' id='answer-label-730373' class=' answer'><span>Leave shareholder accountability to senior management who decides strategic direction<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-23' style=';'><div id='questionWrap-23'  class='   watupro-question-id-181342'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>23. <\/span>The failure of Washington Mutual was NOT due to which one of the following?<\/div><input type='hidden' name='question_id[]' id='qID_23' value='181342' \/><input type='hidden' id='answerType181342' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181342[]' id='answer-id-730374' class='answer   answerof-181342 ' value='730374'   \/><label for='answer-id-730374' id='answer-label-730374' class=' answer'><span>Using a combination of subprime mortgage loans and credit cards<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181342[]' id='answer-id-730375' class='answer   answerof-181342 ' value='730375'   \/><label for='answer-id-730375' id='answer-label-730375' class=' answer'><span>It failed due to the poor quality of its assets<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181342[]' id='answer-id-730376' class='answer   answerof-181342 ' value='730376'   \/><label for='answer-id-730376' id='answer-label-730376' class=' answer'><span>Low lending standards and bad quality acquisitions<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181342[]' id='answer-id-730377' class='answer   answerof-181342 ' value='730377'   \/><label for='answer-id-730377' id='answer-label-730377' class=' answer'><span>A run on its deposits by bank customers<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-24' style=';'><div id='questionWrap-24'  class='   watupro-question-id-181343'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>24. <\/span>The Q4 2003 trading strategy of China Aviation Oil was<\/div><input type='hidden' name='question_id[]' id='qID_24' value='181343' \/><input type='hidden' id='answerType181343' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181343[]' id='answer-id-730378' class='answer   answerof-181343 ' value='730378'   \/><label for='answer-id-730378' id='answer-label-730378' class=' answer'><span>to buy puts and sell calls<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181343[]' id='answer-id-730379' class='answer   answerof-181343 ' value='730379'   \/><label for='answer-id-730379' id='answer-label-730379' class=' answer'><span>to buy calls and sell puts<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181343[]' id='answer-id-730380' class='answer   answerof-181343 ' value='730380'   \/><label for='answer-id-730380' id='answer-label-730380' class=' answer'><span>to sell puts and buy calls<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181343[]' id='answer-id-730381' class='answer   answerof-181343 ' value='730381'   \/><label for='answer-id-730381' id='answer-label-730381' class=' answer'><span>to sell calls and buy puts<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-25' style=';'><div id='questionWrap-25'  class='   watupro-question-id-181344'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>25. <\/span>PwC concluded that the accounting policy adopted by China Aviation Oil was incorrect because it<\/div><input type='hidden' name='question_id[]' id='qID_25' value='181344' \/><input type='hidden' id='answerType181344' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181344[]' id='answer-id-730382' class='answer   answerof-181344 ' value='730382'   \/><label for='answer-id-730382' id='answer-label-730382' class=' answer'><span>only regarded the intrinsic value (i.e. the difference between the strike price and the forward price of the underlying commodity) as the fair value of its options<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181344[]' id='answer-id-730383' class='answer   answerof-181344 ' value='730383'   \/><label for='answer-id-730383' id='answer-label-730383' class=' answer'><span>took into account both the intrinsic value and the time value<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181344[]' id='answer-id-730384' class='answer   answerof-181344 ' value='730384'   \/><label for='answer-id-730384' id='answer-label-730384' class=' answer'><span>only took into account the time value of the option (which includes recognizing the time left to maturity of the option, the volatility of the spot price of the underlying commodity, interest rates and other factors)<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181344[]' id='answer-id-730385' class='answer   answerof-181344 ' value='730385'   \/><label for='answer-id-730385' id='answer-label-730385' class=' answer'><span>used neither the intrinsic value nor the time value<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-26' style=';'><div id='questionWrap-26'  class='   watupro-question-id-181345'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>26. <\/span>Taisei Fire and Marine Insurance Co<\/div><input type='hidden' name='question_id[]' id='qID_26' value='181345' \/><input type='hidden' id='answerType181345' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181345[]' id='answer-id-730386' class='answer   answerof-181345 ' value='730386'   \/><label for='answer-id-730386' id='answer-label-730386' class=' answer'><span>relied almost entirely on Fortress Re's management team for information on the risks in its portfolio<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181345[]' id='answer-id-730387' class='answer   answerof-181345 ' value='730387'   \/><label for='answer-id-730387' id='answer-label-730387' class=' answer'><span>relied on the information it received from other members of the reinsurance pool to manage its risks<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181345[]' id='answer-id-730388' class='answer   answerof-181345 ' value='730388'   \/><label for='answer-id-730388' id='answer-label-730388' class=' answer'><span>had a full understanding from Fortress Re of the risks in the pool<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181345[]' id='answer-id-730389' class='answer   answerof-181345 ' value='730389'   \/><label for='answer-id-730389' id='answer-label-730389' class=' answer'><span>had a full understanding from other members of the pool of the pool's liabilities<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-27' style=';'><div id='questionWrap-27'  class='   watupro-question-id-181346'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>27. <\/span>Select the one correct statement relative to Barings Bank.<\/div><input type='hidden' name='question_id[]' id='qID_27' value='181346' \/><input type='hidden' id='answerType181346' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181346[]' id='answer-id-730390' class='answer   answerof-181346 ' value='730390'   \/><label for='answer-id-730390' id='answer-label-730390' class=' answer'><span>Proprietary and agency trading were combined and therefore did not increase risk.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181346[]' id='answer-id-730391' class='answer   answerof-181346 ' value='730391'   \/><label for='answer-id-730391' id='answer-label-730391' class=' answer'><span>Proprietary and agency trading were separate and therefore did not increase risk.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181346[]' id='answer-id-730392' class='answer   answerof-181346 ' value='730392'   \/><label for='answer-id-730392' id='answer-label-730392' class=' answer'><span>Proprietary and agency trading were combined and therefore did increase risk.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181346[]' id='answer-id-730393' class='answer   answerof-181346 ' value='730393'   \/><label for='answer-id-730393' id='answer-label-730393' class=' answer'><span>Proprietary and agency trading were separate and did increase risk.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-28' style=';'><div id='questionWrap-28'  class='   watupro-question-id-181347'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>28. <\/span>A risk manager finds that a client is engaged in a practice that looks like money laundering. <br \/>\r<br>According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), the risk manager should:<\/div><input type='hidden' name='question_id[]' id='qID_28' value='181347' \/><input type='hidden' id='answerType181347' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181347[]' id='answer-id-730394' class='answer   answerof-181347 ' value='730394'   \/><label for='answer-id-730394' id='answer-label-730394' class=' answer'><span>Approach the client about the concern, regardless of what their reaction might be<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181347[]' id='answer-id-730395' class='answer   answerof-181347 ' value='730395'   \/><label for='answer-id-730395' id='answer-label-730395' class=' answer'><span>Respect the client's confidentiality as that takes precedence<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181347[]' id='answer-id-730396' class='answer   answerof-181347 ' value='730396'   \/><label for='answer-id-730396' id='answer-label-730396' class=' answer'><span>Report this conduct to their immediate supervisor<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181347[]' id='answer-id-730397' class='answer   answerof-181347 ' value='730397'   \/><label for='answer-id-730397' id='answer-label-730397' class=' answer'><span>Report the findings immediately to authorities<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-29' style=';'><div id='questionWrap-29'  class='   watupro-question-id-181348'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>29. <\/span>Which of the following regarding Orange County is FALSE?<\/div><input type='hidden' name='question_id[]' id='qID_29' value='181348' \/><input type='hidden' id='answerType181348' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181348[]' id='answer-id-730398' class='answer   answerof-181348 ' value='730398'   \/><label for='answer-id-730398' id='answer-label-730398' class=' answer'><span>Bob Citron engaged in risky strategies to benefit personally<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181348[]' id='answer-id-730399' class='answer   answerof-181348 ' value='730399'   \/><label for='answer-id-730399' id='answer-label-730399' class=' answer'><span>Bob Citron tried to &quot;ride the yield curve&quot;<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181348[]' id='answer-id-730400' class='answer   answerof-181348 ' value='730400'   \/><label for='answer-id-730400' id='answer-label-730400' class=' answer'><span>Bob Citron heavily leveraged his positions using repos<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181348[]' id='answer-id-730401' class='answer   answerof-181348 ' value='730401'   \/><label for='answer-id-730401' id='answer-label-730401' class=' answer'><span>Citron's losses were eventually exposed by massive margin calls<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-30' style=';'><div id='questionWrap-30'  class='   watupro-question-id-181349'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>30. <\/span>According to the Group of 30 Report, deriving aggregate potential credit exposure for a counterparty by adding up the potential exposure of multiple transactions:<\/div><input type='hidden' name='question_id[]' id='qID_30' value='181349' \/><input type='hidden' id='answerType181349' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181349[]' id='answer-id-730402' class='answer   answerof-181349 ' value='730402'   \/><label for='answer-id-730402' id='answer-label-730402' class=' answer'><span>Gives an accurate result in most cases<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181349[]' id='answer-id-730403' class='answer   answerof-181349 ' value='730403'   \/><label for='answer-id-730403' id='answer-label-730403' class=' answer'><span>Captures portfolio effects but not tenor differences<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181349[]' id='answer-id-730404' class='answer   answerof-181349 ' value='730404'   \/><label for='answer-id-730404' id='answer-label-730404' class=' answer'><span>Can easily reflect the impact of netting<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181349[]' id='answer-id-730405' class='answer   answerof-181349 ' value='730405'   \/><label for='answer-id-730405' id='answer-label-730405' class=' answer'><span>Overstates exposure in most cases<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-31' style=';'><div id='questionWrap-31'  class='   watupro-question-id-181350'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>31. <\/span>The Risk Management Infrastructure of an organization must: <br \/>\r<br>I. To the extent possible, avoid silos of control and oversight <br \/>\r<br>II. Have budgets set by the business unit leaders <br \/>\r<br>III. Actively provide ongoing professional development for risk management staff and require them to be committed to standards of best practice, conduct and ethics in their work <br \/>\r<br>IV. Provide general risk management and related corporate governance training for employees of the organization as a Whole<\/div><input type='hidden' name='question_id[]' id='qID_31' value='181350' \/><input type='hidden' id='answerType181350' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181350[]' id='answer-id-730406' class='answer   answerof-181350 ' value='730406'   \/><label for='answer-id-730406' id='answer-label-730406' class=' answer'><span>I only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181350[]' id='answer-id-730407' class='answer   answerof-181350 ' value='730407'   \/><label for='answer-id-730407' id='answer-label-730407' class=' answer'><span>I, III and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181350[]' id='answer-id-730408' class='answer   answerof-181350 ' value='730408'   \/><label for='answer-id-730408' id='answer-label-730408' class=' answer'><span>I and III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181350[]' id='answer-id-730409' class='answer   answerof-181350 ' value='730409'   \/><label for='answer-id-730409' id='answer-label-730409' class=' answer'><span>All of these are expected of the Risk Management Infrastructure<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-32' style=';'><div id='questionWrap-32'  class='   watupro-question-id-181351'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>32. <\/span>Which is NOT part of the guidance on Professional Conduct in the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct)?<\/div><input type='hidden' name='question_id[]' id='qID_32' value='181351' \/><input type='hidden' id='answerType181351' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181351[]' id='answer-id-730410' class='answer   answerof-181351 ' value='730410'   \/><label for='answer-id-730410' id='answer-label-730410' class=' answer'><span>Know and abide by applicable rules and regulations<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181351[]' id='answer-id-730411' class='answer   answerof-181351 ' value='730411'   \/><label for='answer-id-730411' id='answer-label-730411' class=' answer'><span>Clearly inform all affected parties of any apparent or actual conflicts of interest<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181351[]' id='answer-id-730412' class='answer   answerof-181351 ' value='730412'   \/><label for='answer-id-730412' id='answer-label-730412' class=' answer'><span>Report to the Regulator any departures from generally accepted methodology or practices<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181351[]' id='answer-id-730413' class='answer   answerof-181351 ' value='730413'   \/><label for='answer-id-730413' id='answer-label-730413' class=' answer'><span>Provide advice that is clear and accurate<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-33' style=';'><div id='questionWrap-33'  class='   watupro-question-id-181352'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>33. <\/span>The &quot;normal&quot; credit loss profile of Washington Mutual was increased by which of the following?<\/div><input type='hidden' name='question_id[]' id='qID_33' value='181352' \/><input type='hidden' id='answerType181352' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181352[]' id='answer-id-730414' class='answer   answerof-181352 ' value='730414'   \/><label for='answer-id-730414' id='answer-label-730414' class=' answer'><span>The general downturn in the economy of the US<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181352[]' id='answer-id-730415' class='answer   answerof-181352 ' value='730415'   \/><label for='answer-id-730415' id='answer-label-730415' class=' answer'><span>By lowering its own credit underwriting standards<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181352[]' id='answer-id-730416' class='answer   answerof-181352 ' value='730416'   \/><label for='answer-id-730416' id='answer-label-730416' class=' answer'><span>Acquisitions like Long Beach and Providian<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181352[]' id='answer-id-730417' class='answer   answerof-181352 ' value='730417'   \/><label for='answer-id-730417' id='answer-label-730417' class=' answer'><span>Catastrophic losses in its own credit card division<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-34' style=';'><div id='questionWrap-34'  class='   watupro-question-id-181353'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>34. <\/span>The hedging strategy employed by MG Refining &amp; Marketing has been called:<\/div><input type='hidden' name='question_id[]' id='qID_34' value='181353' \/><input type='hidden' id='answerType181353' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181353[]' id='answer-id-730418' class='answer   answerof-181353 ' value='730418'   \/><label for='answer-id-730418' id='answer-label-730418' class=' answer'><span>Dynamic hedging<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181353[]' id='answer-id-730419' class='answer   answerof-181353 ' value='730419'   \/><label for='answer-id-730419' id='answer-label-730419' class=' answer'><span>A stacked hedge<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181353[]' id='answer-id-730420' class='answer   answerof-181353 ' value='730420'   \/><label for='answer-id-730420' id='answer-label-730420' class=' answer'><span>A differential hedge<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181353[]' id='answer-id-730421' class='answer   answerof-181353 ' value='730421'   \/><label for='answer-id-730421' id='answer-label-730421' class=' answer'><span>Nothing because MG Refining &amp; Marketing did not hedge its position<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-35' style=';'><div id='questionWrap-35'  class='   watupro-question-id-181354'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>35. <\/span>What is (are) the lesson(s) of the Barings' failure?<\/div><input type='hidden' name='question_id[]' id='qID_35' value='181354' \/><input type='hidden' id='answerType181354' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181354[]' id='answer-id-730422' class='answer   answerof-181354 ' value='730422'   \/><label for='answer-id-730422' id='answer-label-730422' class=' answer'><span>Incentive plans have risk management implications<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181354[]' id='answer-id-730423' class='answer   answerof-181354 ' value='730423'   \/><label for='answer-id-730423' id='answer-label-730423' class=' answer'><span>Front and back offices need to be independent<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181354[]' id='answer-id-730424' class='answer   answerof-181354 ' value='730424'   \/><label for='answer-id-730424' id='answer-label-730424' class=' answer'><span>Large profits can be an indicator of risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181354[]' id='answer-id-730425' class='answer   answerof-181354 ' value='730425'   \/><label for='answer-id-730425' id='answer-label-730425' class=' answer'><span>All of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-36' style=';'><div id='questionWrap-36'  class='   watupro-question-id-181355'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>36. <\/span>According to the Group of 30 Report, option contracts:<\/div><input type='hidden' name='question_id[]' id='qID_36' value='181355' \/><input type='hidden' id='answerType181355' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181355[]' id='answer-id-730426' class='answer   answerof-181355 ' value='730426'   \/><label for='answer-id-730426' id='answer-label-730426' class=' answer'><span>Always generate credit risk to both counterparties<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181355[]' id='answer-id-730427' class='answer   answerof-181355 ' value='730427'   \/><label for='answer-id-730427' id='answer-label-730427' class=' answer'><span>Create credit risk only for the buyer (due to default by the seller) provided the premium is due, and paid, at contract initiation<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181355[]' id='answer-id-730428' class='answer   answerof-181355 ' value='730428'   \/><label for='answer-id-730428' id='answer-label-730428' class=' answer'><span>Create no credit risk, since the buyer need not exercise the option<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181355[]' id='answer-id-730429' class='answer   answerof-181355 ' value='730429'   \/><label for='answer-id-730429' id='answer-label-730429' class=' answer'><span>Usually create credit risk only for the seller (to default by the buyer)<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-37' style=';'><div id='questionWrap-37'  class='   watupro-question-id-181356'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>37. <\/span>An Organization as a Whole must: <br \/>\r<br>I. Provide an environment in which an Escalation Policy can be effective <br \/>\r<br>II. Commit itself to actual enforcement of corporate governance policies <br \/>\r<br>III. Provide ongoing education and training to all employees on the role of risk management and corporate governance in the organization <br \/>\r<br>IV. Publish an external auditor's opinion that the corporation is in compliance with the Board's publicly stated Standards of Corporate Governance<\/div><input type='hidden' name='question_id[]' id='qID_37' value='181356' \/><input type='hidden' id='answerType181356' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181356[]' id='answer-id-730430' class='answer   answerof-181356 ' value='730430'   \/><label for='answer-id-730430' id='answer-label-730430' class=' answer'><span>I, II and III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181356[]' id='answer-id-730431' class='answer   answerof-181356 ' value='730431'   \/><label for='answer-id-730431' id='answer-label-730431' class=' answer'><span>I, III and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181356[]' id='answer-id-730432' class='answer   answerof-181356 ' value='730432'   \/><label for='answer-id-730432' id='answer-label-730432' class=' answer'><span>I, II and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181356[]' id='answer-id-730433' class='answer   answerof-181356 ' value='730433'   \/><label for='answer-id-730433' id='answer-label-730433' class=' answer'><span>All of these are expectations of the Organization as a Whole<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-38' style=';'><div id='questionWrap-38'  class='   watupro-question-id-181357'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>38. <\/span>The problems in the Orange County case can best be characterized as failures related to:<\/div><input type='hidden' name='question_id[]' id='qID_38' value='181357' \/><input type='hidden' id='answerType181357' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181357[]' id='answer-id-730434' class='answer   answerof-181357 ' value='730434'   \/><label for='answer-id-730434' id='answer-label-730434' class=' answer'><span>Market Risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181357[]' id='answer-id-730435' class='answer   answerof-181357 ' value='730435'   \/><label for='answer-id-730435' id='answer-label-730435' class=' answer'><span>Credit Risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181357[]' id='answer-id-730436' class='answer   answerof-181357 ' value='730436'   \/><label for='answer-id-730436' id='answer-label-730436' class=' answer'><span>Operational and Regulatory Compliance Risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181357[]' id='answer-id-730437' class='answer   answerof-181357 ' value='730437'   \/><label for='answer-id-730437' id='answer-label-730437' class=' answer'><span>All of the Above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-39' style=';'><div id='questionWrap-39'  class='   watupro-question-id-181358'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>39. <\/span>The financial intermediary services provided by Fannie Mae and Freddie Mac were designed to<\/div><input type='hidden' name='question_id[]' id='qID_39' value='181358' \/><input type='hidden' id='answerType181358' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181358[]' id='answer-id-730438' class='answer   answerof-181358 ' value='730438'   \/><label for='answer-id-730438' id='answer-label-730438' class=' answer'><span>Offer loans directly to the consumer<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181358[]' id='answer-id-730439' class='answer   answerof-181358 ' value='730439'   \/><label for='answer-id-730439' id='answer-label-730439' class=' answer'><span>Compete directly with banks in selling mortgaged to would-be home owners<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181358[]' id='answer-id-730440' class='answer   answerof-181358 ' value='730440'   \/><label for='answer-id-730440' id='answer-label-730440' class=' answer'><span>Repackage mortgage loans made by banks and sell them on to investors as asset backed securities<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181358[]' id='answer-id-730441' class='answer   answerof-181358 ' value='730441'   \/><label for='answer-id-730441' id='answer-label-730441' class=' answer'><span>Buy mortgage-backed loans for banks and keep them all on their books, using them as collateral for the US government to borrow<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-40' style=';'><div id='questionWrap-40'  class='   watupro-question-id-181359'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>40. <\/span>Which of the following does NOT relate to the Orange County case?<\/div><input type='hidden' name='question_id[]' id='qID_40' value='181359' \/><input type='hidden' id='answerType181359' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181359[]' id='answer-id-730442' class='answer   answerof-181359 ' value='730442'   \/><label for='answer-id-730442' id='answer-label-730442' class=' answer'><span>Where there are excess rewards, there must be risks<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181359[]' id='answer-id-730443' class='answer   answerof-181359 ' value='730443'   \/><label for='answer-id-730443' id='answer-label-730443' class=' answer'><span>The Know Your Customer rule<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181359[]' id='answer-id-730444' class='answer   answerof-181359 ' value='730444'   \/><label for='answer-id-730444' id='answer-label-730444' class=' answer'><span>Strategies that are not possible to explain to third parties should not be employed by the risk averse<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-181359[]' id='answer-id-730445' class='answer   answerof-181359 ' value='730445'   \/><label for='answer-id-730445' id='answer-label-730445' class=' answer'><span>Fractured organisational structure and poor risk oversight mechanism make it easy for powerful individuals to hide risk in the gaps<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div style='display:none' id='question-41'>\n\t<div class='question-content'>\n\t\t<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/plugins\/watupro\/img\/loading.gif\" width=\"16\" height=\"16\" alt=\"Loading...\" title=\"Loading...\" \/>&nbsp;Loading...\t<\/div>\n<\/div>\n\n<br \/>\n\t\n\t\t\t<div class=\"watupro_buttons flex \" id=\"watuPROButtons5489\" >\n\t\t  <div id=\"prev-question\" style=\"display:none;\"><input type=\"button\" value=\"&lt; Previous\" onclick=\"WatuPRO.nextQuestion(event, 'previous');\"\/><\/div>\t\t  \t\t  \t\t   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181330:730326,730327,730328,730329 | 181331:730330,730331,730332,730333 | 181332:730334,730335,730336,730337 | 181333:730338,730339,730340,730341 | 181334:730342,730343,730344,730345 | 181335:730346,730347,730348,730349 | 181336:730350,730351,730352,730353 | 181337:730354,730355,730356,730357 | 181338:730358,730359,730360,730361 | 181339:730362,730363,730364,730365 | 181340:730366,730367,730368,730369 | 181341:730370,730371,730372,730373 | 181342:730374,730375,730376,730377 | 181343:730378,730379,730380,730381 | 181344:730382,730383,730384,730385 | 181345:730386,730387,730388,730389 | 181346:730390,730391,730392,730393 | 181347:730394,730395,730396,730397 | 181348:730398,730399,730400,730401 | 181349:730402,730403,730404,730405 | 181350:730406,730407,730408,730409 | 181351:730410,730411,730412,730413 | 181352:730414,730415,730416,730417 | 181353:730418,730419,730420,730421 | 181354:730422,730423,730424,730425 | 181355:730426,730427,730428,730429 | 181356:730430,730431,730432,730433 | 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